John Marshall Bank Reports Mid-Year Financial Results

RESTON, Va.--(BUSINESS WIRE)-- John Marshall Bank (OTCQB: JMSB) (the “Bank”) reported net income of $2.4 million for the three months ended June 30, 2016, an increase of $225 thousand or 10.2%, as compared to net income of $2.2 million for the three months ended June 30, 2015. Net income per diluted share was $0.23 per share during the three months ending June 30, 2016, compared to $0.21 per diluted share during the same period in 2015.

The Bank’s three month results produced an annualized return of 1.03% on average assets and 8.71% on average equity, compared to 1.05% and 8.52%, respectively, for the same period a year ago. As of June 30, 2016, the Bank’s tangible book value per share was $11.24, up 7.7% compared to $10.44 as of June 30, 2015.

The Bank reported net income of $3.0 million for the six months ended June 30, 2016, a decrease of $1.3 million compared to $4.3 million for the sixth months ended June 30, 2015. The decrease in year-over-year earnings was attributable to an increased loan loss provision of $3.0 million for first six months of 2016 compared to $582 thousand for the same period in 2015.

The Bank’s capital ratios remain well above regulatory minimums for well capitalized banks. As of June 30, 2016, the Bank’s total risk-based capital ratio was 12.7%, compared to 13.5% at June 30, 2015.

Balance Sheet Review

At June 30, 2016, total assets were $975.6 million, an increase of $119.8 million, or 14.0%, from total assets of $855.8 million at June 30, 2015. Gross loans increased $92.0 million, or 12.6%, to $819.7 million at June 30, 2016, compared to $727.7 million at June 30, 2015. Year-over-year net loan growth, from June 30, 2015 to June 30, 2016, was $90.5 million, or 12.6%. The Bank’s investment portfolio comprised of held-to-maturity, available-for-sale, and restricted securities, increased $10.7 million, or 9.8%, to $95.5 million at June 30, 2016, compared to $87.0 million at June 30, 2015. As of June 30, 2016, the Bank held $46.7 million of its investment portfolio as held-to-maturity, and $42.1 million as available-for-sale. The Bank had $1.0 million in other real estate owned as of June 30, 2015, and no other real estate owned as of June 30, 2016.

The Bank purchased $18.0 million of bank owned life insurance during the first quarter of 2016. Bank owned life insurance represents insurance policies on officers and directors of the Bank. The cash values of the policies are estimates using information provided by insurance carriers. These policies are carried at their cash surrender value, which approximates their fair value. As of June 30, 2016, the estimated fair value was $18.2 million.

Total deposits were $762.3 million at June 30, 2016, representing an increase of $94.3 million, or 14.1%, compared to $668.0 million at June 30, 2015. Total borrowings, consisting of Federal Home Loan Bank advances and customer repurchase agreements, were $95.4 million at June 30, 2016, an increase of $16.7 million, or 21.2%, compared to $78.7 million at June 30, 2015.

QwickRate certificates of deposit decreased by $2.5 million from $24.1 at June 30, 2015 to $21.6 million at June 30, 2016. CDARs increased $4.0 million from $65.5 million at June 30, 2015 to $69.5 million at June 30, 2016. Brokered certificates of deposit increased by $5.6 million from $21.3 million at June 30, 2015 to $26.9 million at June 30, 2016. Year-over-year Federal Home Loan Bank advances increased by $16.0 million, or 25.4%. Core customer funding sources increased by $91.9 million, or 14.4%, from $638.3 million at June 30, 2015 to $730.2 million at June 30, 2016.

Total shareholders’ equity was $112.8 million at June 30, 2016, an increase of $8.6 million, or 8.2%, compared to $104.2 million at June 30, 2015. The majority of the increase in shareholders’ equity over the past year is attributed to net income retained during the past twelve months. Total common shares outstanding increased from 9,980,240 at June 30, 2015 to 10,031,349 at June 30, 2016.

Income Statement Review

Net interest income

Net interest income, the Bank’s primary source of revenue, was $8.8 million for the three months ended June 30, 2016, up 4.9% from $8.4 million for the three months ended June 30, 2015. The net interest margin was 3.84% during the second quarter of 2016, compared to 4.09% during the second quarter of 2015. The decline in the net interest margin from year-over-year is primarily attributed to a decline in the Bank’s yield on earning assets to 4.50% during the second quarter of 2016 from 4.71% during the second quarter of 2015, which is substantially the result of a 22 basis point year-over-year decline in loan yields and a 6 basis point year-over-year decline in securities yields. Loan yields quarter-over-quarter declined 3 basis points from 4.94% to 4.91% and securities yields were unchanged at 2.00%, from March 31, 2016 to June 30, 2016.

For the six months ended June 30, 2016, net interest income was $17.4 million, up 6.5% from $16.4 million for the six months ended June 30, 2015. The net interest margin was 3.82% during the first six months of 2016, compared to 4.13% during the first six months of 2015. The decline in the net interest margin from year-to-year is primarily attributed to a decline in the Bank’s yield on earning assets to 4.48% during the first six months of 2016 from 4.74% during the first six months of 2015, which is substantially the result of a 23 basis point year-to-year decline in loan yields and an 8 basis point year-over-year decline in securities yields.

Despite the decline in the net interest margin over the past year, net interest income increased by 6.5% during the first six months of 2016, compared to the first six months of 2015, resulting primarily from a $119.6 million, or 15.0%, increase in average earning assets during the first six months of 2016, compared to the first six months of 2015.

Provision for loan losses

The Bank recognized a provision for loan losses of $240 thousand during the second quarter of 2016, compared to a provision of $371 thousand during the second quarter of 2015. The Bank reported no loan charge-offs during the second quarter of 2016 and $279 thousand in net loan charge-offs during the second quarter of 2015.

During the first six months of 2016, the Bank recognized a provision for loan losses of $3.0 million, compared to a provision of $582 thousand during the first six months of 2015. The Bank reported net loan charge-offs of $1.9 million during the first six months of 2016, compared to net loan charge-offs of $279 thousand during the first six months of 2015. During the first quarter 2016, the Bank incurred a $1.9 million charge-off as previously disclosed in the earnings release for the first quarter of 2016.

Noninterest income

The Bank’s primary source of noninterest income is service charges on deposit accounts. Loan fees are included in interest income on the loan portfolio and not reported as noninterest income. For the three months ended June 30, 2016, the Bank reported total noninterest income of $275 thousand, compared to $128 thousand during the second quarter of 2015.

For the six months ended June 30, 2016, the Bank reported total noninterest income of $470 thousand, compared to $268 thousand during the first six months of 2015, an increase of 75.4%. The year-over-year increase for both the three and six month periods ended June 30, 2016 was attributable to income related to bank owned life insurance that was purchased in the first quarter of 2016.

Noninterest expense

The largest component of the Bank’s noninterest expense is employee salaries and benefits. Salary and benefits expense increased by 9.5%, to $3.1 million, during the second quarter of 2016 compared to $2.8 million during the second quarter of 2015. All other operating expenses increased by $223 thousand, or 11.8%, to $2.1 million, during the second quarter of 2016, compared to $1.9 million during the second quarter of 2015.

During the first six months of 2016, salary and employee benefits expense increased by 7.6%, to $6.1 million, compared to $5.7 million during the first six months of 2015. All other operating expenses increased by 17.9%, or $656 thousand, to $4.3 million, during the first six months of 2016, compared to $3.7 million during the first six months of 2015.

The increase in other operating expense was associated to higher FDIC insurance related to growth, loan collection fees related to the non-performing loans and one-time costs incurred related to the Bank’s core system conversion which took place in April 2016.

Asset Quality Review

As of June 30, 2016, non-performing assets were 0.34% of total assets, up from 0.21% at June 30, 2015. The Bank’s allowance for loan losses covered non-performing loans by 2.5 times as of June 30, 2016, compared to 9.1 times as of June 30, 2015. The increase in non-performing assets is related to the reclassification of $2.0 million of residential real estate investment loans to non-accrual status during the fourth quarter of 2015. The loans are to one customer and are secured by residential real estate properties in the process of sale. The estimated impairment on the loans has been fully reserved as of June 30, 2016 and we do not anticipate any further losses related to these loans.

As of June 30, 2016, there were $2.1 million in loans 30-89 days past due and still accruing interest. This $2.1 million loan was renewed in July 2016 as a normal renewal for a performing credit. As of June 30, 2015 there were no loans 30-89 days past due and still accruing interest.

Troubled debt restructurings were $514 thousand at June 30, 2016, a decrease of $1.3 million, or 71.2%, from $1.8 million as of June 30, 2015. All troubled debt restructurings were performing in accordance with modified terms as of June 30, 2016. The Bank had $1.0 million in other real estate owned as of June 30, 2015, and no other real estate owned as of June 30, 2016.

John Marshall Bank is headquartered in Reston, Virginia and has five full-service branches located in Reston, Leesburg, Arlington, Alexandria and Rockville. The Bank also has two limited-service commercial branches located in Washington, DC and Tysons Corner, VA. Further information on the Bank can be obtained by visiting its website at www.johnmarshallbank.com.

This press release contains forward-looking statements within the meaning of the Securities and Exchange Act of 1934, as amended, including statements of goals, intentions, and expectations as to future trends, plans, events or results of Bank operations and policies and regarding general economic conditions. In some cases, forward-looking statements can be identified by use of words such as “may,” “will,” “anticipates,” “believes,” “expects,” “plans,” “estimates,” “potential,” “continue,” “should,” and similar words or phrases. These statements are based upon current and anticipated economic conditions, nationally and in the Bank’s market, interest rates and interest rate policy, competitive factors, and other conditions which by their nature, are not susceptible to accurate forecast, and are subject to significant uncertainty. Because of these uncertainties and the assumptions on which this discussion and the forward-looking statements are based, actual future operations and results may differ materially from those indicated herein. Readers are cautioned against placing undue reliance on any such forward-looking statements. The Bank’s past results are not necessarily indicative of future performance.

John Marshall Bank
Balance Sheets
(Dollar amounts in thousands, except per share data)
														% Change
		June 30,				December 31,				June 30,				Last Three			Year Over
		2016				2015				2015				Months			Year
Assets		(Unaudited)								(Unaudited)
Cash and due from banks		$	6,830			$	8,217			$	7,061			-16.9	%		-3.3	%
Interest-bearing deposits in banks			30,593				46,738				28,031			-34.5	%		9.1	%
Securities available-for-sale, at fair value			42,112				32,145				32,729			31.0	%		28.7	%
Securities held-to-maturity, fair value of $47,760 at 6/30/2016, $46,780 at 12/31/2015 and $48,664 at 6/30/2015			46,706				46,479				48,385			0.5	%		-3.5	%
Restricted securities, at cost			6,695				6,210				5,866			7.8	%		14.1	%
Loans, net of allowance for loan losses of $8,170 at 6/30/2016; $7,130 at 12/31/2015 and $6,809 at 6/30/2015			810,068				774,633				719,583			4.6	%		12.6	%
Bank premises and equipment, net			2,641				2,690				2,885			-1.8	%		-8.5	%
Accrued interest receivable			2,341				2,318				2,254			1.0	%		3.9	%
Bank owned life insurance			18,214				- -				- -			n/a			n/a
Other real estate owned			- -				- -				1,008			n/a			n/a
Other assets			9,365				9,190				7,970			1.9	%		17.5	%
Total assets		$	975,565			$	928,620			$	855,772			5.1	%		14.0	%
Liabilities and Shareholders' Equity
Liabilities
Deposits:
Non-interest bearing demand deposits		$	144,377			$	136,361			$	117,432			5.9	%		22.9	%
Interest bearing demand deposits			239,479				235,313				214,680			1.8	%		11.6	%
Savings deposits			7,659				17,154				6,140			-55.4	%		24.7	%
Time deposits			370,817				342,025				329,763			8.4	%		12.4	%
Total deposits			762,332				730,853				668,015			4.3	%		14.1	%
Repurchase agreements			16,355				11,972				15,683			36.6	%		4.3	%
Federal Home Loan Bank advances			79,000				71,000				63,000			11.3	%		25.4	%
Accrued interest payable			158				109				100			45.0	%		58.0	%
Other liabilities			4,947				5,384				4,758			-8.1	%		4.0	%
Total liabilities			862,792				819,318				751,556			5.3	%		14.8	%
Shareholders' Equity
Preferred stock, par value $5 per share; authorized 1,000,000 shares; none issued			- -				- -				- -			- -			- -
Common stock, nonvoting, par value $5 per share; authorized 1,000,000 shares; none issued			- -				- -				- -			- -			- -
Common stock, voting, par value $5 per share; authorized 20,000,000 shares; issued and outstanding, 10,031,349 shares at 6/30/2016, 10,016,574 at 12/31/2015, and 9,980,240 at 6/30/2015			50,157				50,083				49,901			0.1	%		0.5	%
Additional paid-in capital			31,538				31,313				30,938			0.7	%		1.9	%
Retained earnings			31,139				28,153				23,594			10.6	%		32.0	%
Accumulated other comprehensive loss			(61	)			(247	)			(217	)		75.3	%		71.9	%
Total shareholders' equity			112,773				109,302				104,216			3.2	%		8.2	%
Total liabilities and shareholders' equity		$	975,565			$	928,620			$	855,772			5.1	%		14.0	%

John Marshall Bank
Statements of Income
(Dollar amounts in thousands, except per share data)
		Three Months Ended									Six Months Ended
		June 30,									June 30,
		2016			2015			% Change			2016			2015			% Change
		(Unaudited)			(Unaudited)						(Unaudited)			(Unaudited)
Interest and Dividend Income
Interest and fees on loans		$	9,835		$	9,201		6.9	%		$	19,494		$	17,956		8.6	%
Interest on investment securities, taxable			326			332		-1.8	%			648			627		3.3	%
Interest on investment securities, tax-exempt			42			26		61.5	%			75			52		43.4	%
Dividends			85			87		-2.3	%			164			142		15.7	%
Interest on deposits in banks			29			11		163.6	%			82			20		314.8	%
Total interest and dividend income			10,317			9,657		6.8	%			20,463			18,797		8.9	%
Interest Expense
Deposits			1,326			1,109		19.6	%			2,644			2,124		24.5	%
Federal Home Loan Bank advances			174			141		23.3	%			342			258		32.3	%
Other short-term borrowings			16			18		-11.1	%			31			32		-3.7	%
Total interest expense			1,516			1,268		19.6	%			3,017			2,414		25.0	%
Net interest income			8,801			8,389		4.9	%			17,446			16,383		6.5	%
Provision for loan losses			240			371		-35.3	%			2,975			582		411.2	%
Net interest income after provision for loan losses			8,561			8,018		6.8	%			14,471			15,801		-8.4	%
Noninterest Income
Service charges on deposit accounts			98			114		-14.0	%			220			232		-5.2	%
Bank owned life insurance income			161			- -		n/a				215			- -		n/a
Other service charges and fees			16			14		14.3	%			35			36		-2.8	%
Total noninterest income			275			128		114.8	%			470			268		75.4	%
Noninterest Expenses
Salaries and employee benefits			3,088			2,819		9.5	%			6,132			5,699		7.6	%
Occupancy expense of premises			413			453		-8.8	%			832			893		-6.8	%
Furniture and equipment expenses			309			261		18.4	%			641			519		23.5	%
Other operating expenses			1,386			1,171		18.4	%			2,850			2,255		26.4	%
Total noninterest expenses			5,196			4,704		10.5	%			10,455			9,366		11.6	%
Income before income taxes			3,640			3,442		5.7	%			4,486			6,703		-33.1	%
Income tax expense			1,214			1,241		-2.2	%			1,500			2,395		-37.4	%
Net income		$	2,426		$	2,201		10.2	%		$	2,986		$	4,308		-30.7	%
Earnings Per Share
Basic		$	0.24		$	0.22		8.8	%		$	0.30		$	0.43		-30.5	%
Diluted		$	0.23		$	0.21		9.5	%		$	0.28		$	0.41		-32.0	%

John Marshall Bank
Loan, Deposit and Borrowing Detail (Unaudited)
(Dollar amounts in thousands)
		June 30, 2016							December 31, 2015							June 30, 2015							Percentage Change
Loans		$ Amount				% of Total			$ Amount				% of Total			$ Amount				% of Total			Last 3 Mos			Last 12 Mos
Mortgage loans on real estate
Commercial		$	475,702			58.0	%		$	441,309			56.3	%		$	401,665			55.2	%		7.8	%		18.4	%
Construction and land development			158,798			19.4	%			150,786			19.3	%			152,313			20.9	%		5.3	%		4.3	%
Residential			99,051			12.1	%			95,496			12.2	%			88,254			12.1	%		3.7	%		12.2	%
Total mortgage loans on real estate		$	733,551			89.5	%		$	687,591			87.8	%		$	642,232			88.3	%		6.7	%		14.2	%
Commercial loans			81,861			10.0	%			94,371			12.0	%			84,522			11.6	%		-13.3	%		-3.1	%
Consumer loans			4,309			0.5	%			1,203			0.2	%			960			0.1	%		258.3	%		348.7	%
Total loans		$	819,721			100.0	%		$	783,165			100.0	%		$	727,714			100.0	%		4.7	%		12.6	%
Less: Allowance for loan losses			(8,170	)						(7,130	)						(6,809	)
Net deferred loan fees			(1,483	)						(1,402	)						(1,322	)
Net loans		$	810,068						$	774,633						$	719,583
		June 30, 2016							December 31, 2015							June 30, 2015							Percentage Change
Deposits		$ Amount				% of Total			$ Amount				% of Total			$ Amount				% of Total			Last 3 Mos			Last 12 Mos
Noninterest-bearing demand deposits		$	144,377			19.0	%		$	136,361			18.7	%		$	117,432			17.6	%		5.9	%		22.9	%
Interest-bearing demand deposits:
NOW accounts			14,041			1.8	%			23,496			3.2	%			11,855			1.8	%		-40.2	%		18.4	%
Money market accounts			222,487			29.2	%			211,817			29.0	%			202,825			30.3	%		5.0	%		9.7	%
Savings accounts			7,659			1.0	%			17,154			2.3	%			6,140			0.9	%		-55.4	%		24.7	%
Certificates of deposit
$250,000 or more			154,476			20.3	%			137,381			18.8	%			131,568			19.7	%		12.4	%		17.4	%
Less than $250,000			101,269			13.3	%			94,164			12.9	%			87,249			13.1	%		7.5	%		16.1	%
QwickRate® Certificates of deposit			21,602			2.8	%			25,018			3.4	%			24,138			3.6	%		-13.7	%		-10.5	%
CDARS®			69,518			9.1	%			62,943			8.6	%			65,558			9.8	%		10.4	%		6.0	%
Brokered deposits			26,903			3.5	%			22,519			3.1	%			21,250			3.2	%		19.5	%		26.6	%
Total deposits		$	762,332			100.0	%		$	730,853			100.0	%		$	668,015			100.0	%		4.3	%		14.1	%
Borrowings
Customer repurchase agreements		$	16,355			17.2	%		$	11,972			14.4	%		$	15,683			19.9	%		36.6	%		4.3	%
Federal Home Loan Bank advances			79,000			82.8	%			71,000			85.6	%			63,000			80.1	%		11.3	%		25.4	%
Total borrowings		$	95,355			100.0	%		$	82,972			100.0	%		$	78,683			100.0	%		14.9	%		21.2	%
Total deposits and borrowings		$	857,687						$	813,825						$	746,698						5.4	%		14.9	%
Core customer funding sources (1)		$	730,182			85.1	%		$	695,288			85.4	%		$	638,310			85.5	%		5.0	%		14.4	%
Wholesale funding sources (2)			127,505			14.9	%			118,537			14.6	%			108,388			14.5	%		7.6	%		17.6	%
Total funding sources		$	857,687			100.0	%		$	813,825			100.0	%		$	746,698			100.0	%		5.4	%		14.9	%

(1)		Includes CDARS(r), which are all reciprocal deposits maintained by Bank customers, and repurchase agreements, which represent sweep accounts tied to customer operating accounts.
(2)		Consists of QwickRate(r) certificates of deposit, brokered deposits and Federal Home Loan Bank advances

John Marshall Bank
Average Balance Sheets, Interest and Rates (unaudited)
(Dollar amounts in thousands)
		Three Months Ended June 30, 2016									Three Months Ended June 30, 2015
					Interest			Average						Interest			Average
		Average			Income-			Yields			Average			Income-			Yields
		Balance			Expense			/Rates			Balance			Expense			/Rates
Assets
Securities		$	90,969		$	453		2.00	%		$	86,793		$	445		2.06	%
Loans, net of unearned income			805,377			9,835		4.91	%			719,586			9,201		5.13	%
Interest-bearing deposits in other banks			25,502			29		0.46	%			16,565			11		0.27	%
Total interest-earning assets		$	921,848		$	10,317		4.50	%		$	822,944		$	9,657		4.71	%
Other assets			29,943									17,193
Total assets		$	951,791								$	840,137
Liabilities & Shareholders' equity
Interest-bearing deposits
NOW accounts		$	13,866		$	19		0.55	%		$	13,823		$	9		0.27	%
Money market accounts			218,314			291		0.54	%			204,334			272		0.53	%
Savings accounts			10,707			11		0.41	%			6,308			5		0.30	%
Time deposits			362,303			1,005		1.12	%			309,540			823		1.07	%
Total interest-bearing deposits		$	605,190		$	1,326		0.88	%		$	534,005		$	1,109		0.83	%
Securities sold under agreement to repurchase and federal funds purchased		$	15,437		$	16		0.42	%		$	16,718		$	18		0.44	%
Other borrowed funds			68,187			174		1.03	%			59,516			141		0.95	%
Total interest-bearing liabilities		$	688,814		$	1,516		0.89	%		$	610,239		$	1,268		0.83	%
Demand deposits and other liabilities			150,891									126,261
Total liabilities		$	839,705								$	736,500
Shareholders' equity			112,086									103,637
Total liabilities and shareholders' equity		$	951,791								$	840,137
Interest rate spread								3.61	%								3.88	%
Net interest income and margin					$	8,801		3.84	%					$	8,389		4.09	%
		Six Months Ended June 30, 2016									Six Months Ended June 30, 2015
					Interest			Average						Interest			Average
		Average			Income-			Yields			Average			Income-			Yields
		Balance			Expense			/Rates			Balance			Expense			/Rates
Assets
Securities		$	89,099		$	887		2.00	%		$	79,811		$	821		2.08	%
Loans, net of unearned income			796,052			19,494		4.92	%			702,824			17,956		5.15	%
Interest-bearing deposits in other banks			33,421			82		0.49	%			16,345			20		0.24	%
Total interest-earning assets		$	918,572		$	20,463		4.48	%		$	798,980		$	18,797		4.74	%
Other assets			24,581									16,892
Total assets		$	943,153								$	815,872
Liabilities & Shareholders' equity
Interest-bearing deposits
NOW accounts		$	17,584		$	35		0.40	%		$	13,844		$	18		0.27	%
Money market accounts			214,857			573		0.54	%			198,396			523		0.53	%
Savings accounts			12,811			31		0.49	%			6,815			11		0.32	%
Time deposits			359,726			2,005		1.12	%			300,982			1,572		1.05	%
Total interest-bearing deposits		$	604,978		$	2,644		0.88	%		$	520,037		$	2,124		0.82	%
Securities sold under agreement to repurchase and federal funds purchased		$	14,695		$	31		0.42	%		$	15,009		$	32		0.43	%
Other borrowed funds			67,896			342		1.01	%			54,144			258		0.96	%
Total interest-bearing liabilities		$	687,569		$	3,017		0.88	%		$	589,190		$	2,414		0.83	%
Demand deposits and other liabilities			143,978									124,181
Total liabilities		$	831,547								$	713,371
Shareholders' equity			111,606									102,501
Total liabilities and shareholders' equity		$	943,153								$	815,872
Interest rate spread								3.60	%								3.91	%
Net interest income and margin					$	17,446		3.82	%					$	16,383		4.13	%

John Marshall Bank
Financial Highlights (Unaudited)
(Dollar amounts in thousands, except per share data)
		At or For the Three Months Ended								At or For the Six Months Ended
		June 30								June 30
		2016				2015				2016				2015
Per share Data and Shares Outstanding
Earnings per share - basic		$	0.24			$	0.22			$	0.30			$	0.43
Earnings per share - diluted		$	0.23			$	0.21			$	0.28			$	0.41
Tangible book value per share		$	11.24			$	10.44			$	11.24			$	10.44
Weighted average common shares (basic)			10,031,011				9,980,009				10,028,888				9,977,586
Weighted average common shares (diluted)			10,538,961				10,479,582				10,536,838				10,463,907
Common shares outstanding at end of period			10,031,349				9,980,240				10,031,349				9,980,240
Performance Ratios
Return on average assets (annualized)			1.03	%			1.05	%			0.64	%			1.06	%
Return on average equity (annualized)			8.71	%			8.52	%			5.38	%			8.48	%
Yield on earning assets (annualized)			4.50	%			4.71	%			4.48	%			4.74	%
Cost of interest bearing liabilities (annualized)			0.89	%			0.83	%			0.88	%			0.83	%
Net interest spread			3.61	%			3.88	%			3.60	%			3.91	%
Net interest margin			3.84	%			4.09	%			3.82	%			4.13	%
Noninterest income as a percentage of average assets (annualized)			0.12	%			0.06	%			0.10	%			0.07	%
Noninterest expense to average assets (annualized)			2.20	%			2.25	%			2.23	%			2.31	%
Efficiency ratio			57.2	%			55.2	%			58.4	%			56.2	%
Asset Quality
Loans 30-89 days past due and accruing interest		$	2,101			$	-			$	2,101			$	-
Loans Past Due 90 days or more and accruing int		$	-			$	-			$	-			$	-
Non-accrual loans		$	3,325			$	750			$	3,325			$	750
Other real estate owned		$	-			$	1,008			$	-			$	1,008
Non-performing assets (1)		$	3,325			$	1,758			$	3,325			$	1,758
Non-performing assets to total assets			0.34	%			0.21	%			0.34	%			0.21	%
Allowance for loan losses to total loans			1.00	%			0.94	%			1.00	%			0.94	%
Allowance for loan losses to non-performing loans			2.5				9.1				2.5				9.1
Net loan charge-offs		$	-			$	279			$	1,935			$	279
Net charge-offs to average loans (annualized)			0.00	%			0.16	%			0.49	%			0.08	%
Troubled debt restructurings (total)		$	514			$	1,787			$	514			$	1,787
Performing in accordance with modified terms		$	514			$	1,787			$	514			$	1,787
Not performing in accordance with modified terms		$	-			$	-			$	-			$	-
Regulatory Capital Ratios
Total risk-based capital ratio			12.7	%			13.5	%			12.7	%			13.5	%
Tier 1 risk-based capital ratio			11.8	%			12.6	%			11.8	%			12.6	%
Leverage ratio			11.9	%			12.1	%			11.9	%			12.1	%
Common equity tier 1 ratio			11.8	%			12.6	%			11.8	%			12.6	%
Other Information
Effective income tax rate			33.4	%			36.0	%			33.4	%			35.7	%
Tangible equity / tangible assets			11.6	%			12.2	%			11.6	%			12.2	%
Average tangible equity / average tangible assets			11.8	%			12.3	%			11.8	%			12.6	%
Number of full time equivalent employees			108				100				108				100
# Full service branch offices			5				5				5				5
# Loan production or limited service branch offices			2				1				2				1

(1)		Non-performing assets consist of non-accrual loans, loans 90 day or more past due and still accruing interest, and other real estate owned. Does not include troubled debt restructurings ("TDRs") which were accruing interest at the date indicated.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160801006142/en/

John Marshall Bank
John R. Maxwell, 703-584-0840

Source: John Marshall Bank

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• SanDisk upgraded at JPMorgan after investor day; shares climb
• Hydrofarm Holdings Group, Inc. (HYFM) Misses Q2 EPS by 134c